Net Lease Michaels Property Profile and Cap Rates

Net Lease Michaels – Typical Property and Lease Terms

 

Price Range:	$3M - $6M
Cap Rate:	6.75% - 7.00%
Net Income:	$215,000 - $400,000
Price Per foot:	$155 PSF - $300 PSF
Building Size:	19,000 SF
Lot Size:	2 Acres
Escalations:	10% Every 5-Years
Lease Term:	20 Years
Lease Type:	NNN
Credit Rating:	BB- (S&P)

 

Tenant Company Information:

 

The Michaels Companies, Inc. is an American company that is North America’s largest provider of arts, crafts, framing, floral & wall décor, and merchandise for makers and do-it-yourself home decorators.[5] The company was founded by Michael J. Dupey in Dallas, Texas. The Michaels Companies’ corporate headquarters are located in Irving, Texas.[6][7]

The Michaels Companies, Inc. owns and operates more than 1,250 Michaels flagship stores.

In addition to operating stores, The Michaels Companies operate subsidiaries Aaron Brothers Custom Framing store-within-a-store,[8] Artistree – a manufacturer of high quality custom and specialty framing merchandise; and Darice, a wholesale distributor to the craft, gift, and décor industry.[9]

As of August 2018, the company reported that in addition to its Michaels Stores brand, it produces over a dozen private brands including Recollections, Studio Décor, Bead Landing, Creatology and Ashland.[5] Michaels competitors include Hobby Lobby, Ben Franklin, Jo-Ann Stores, and several smaller chains. In November 2019, The Michaels Companies, Inc. announced that they would reopen up to 40 A.C. Moore stores after its bankruptcy and liquidation.

 

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